Chinese Restaurants Hit With a $1.9 Million Dollar Judgment For Minimum Wage, Tip, Overtime, and Spread of Hours Violations

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Chinese Restaurants Hit With a $1.9 Million Dollar Judgment For Minimum Wage, Tip, Overtime, and Spread of Hours Violations

The October 27, 2010 Final Order against two Chinese restaurants in Manhattan totaled $1,927,965.91 for twenty-four waiters, delivery workers and a food packer who worked at the Wu Liang Ye 86 Restaurant and Wu Liang Ye Lexington Avenue Restaurant on the East Side of Manhattan.  (The restaurants have no ownership connection to Wu Liang Ye on West 48th Street.)

The Fair Labor Standards Act (FLSA) and New York Labor Law violations contained in the September 30, 2010 decision of Judge Denny Chin, federal court judge, included the restaurants’ failure to pay the workers overtime for work over 40 hours in a week, failure to pay the workers spread of hours pay for days which their workdays were longer than ten hours, improperly deducting ten percent of all tips received on credit cards from delivery workers and waiters, requiring the waiters to kick-back to management 12 to 15 percent of all tips they received, and failure to pay for the cost of acquiring and maintaining bicycles delivery workers used for their delivery work.

The restaurants and the individual owners were also held liable for tips, lost wages, liquidated damages, interest, and $327,000 in attorneys’ fees incurred by the workers’ attorneys.  The $1,927,965.91 total was imposed both jointly and separately against the two restaurants as well as two individual defendants.

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